napier city council pre-election report · 2018-11-27 · from the chief executive welcome to...

Napier City Council

Pre-election ReportJuly 2016

ContentsAbout this report ........................................................................................................................................................................................................................................................1

Where to find out more .........................................................................................................................................................................................................................................1

Strategic Direction ....................................................................................................................................................................................................................................................1

From the Chief Executive ...................................................................................................................................................................................................................................2

Financial Strategy ................................................................................................................................................................................................................................................... 3

Funding Impact Statement - Whole of Council ................................................................................................................................................................................ 6

Summary of Cash Flows ....................................................................................................................................................................................................................................7

Summary Statement of Financial Position .......................................................................................................................................................................................... 8

Financial Condition Indicators....................................................................................................................................................................................................................... 9

Key Statistics .............................................................................................................................................................................................................................................................. 9

Borrowing .................................................................................................................................................................................................................................................................... 10

Annual NRB Public Satisfaction Survey ................................................................................................................................................................................................ 12

Major projects planned for the three financial years following the 2016 election ................................................................................................ 13

Other Matters ............................................................................................................................................................................................................................................................ 15

About this reportThis Pre-election Report provides voters and candidates with information about the key issues facing Napier City Council. Its purpose is to promote public discussion in the lead up to the local body elections to be held on 8 October 2016.

What it includesThe Pre-election Report has a particular focus on how the Council is performing financially, including the current financial position and key spending issues over the coming years.

It provides historic information for the past three years, an overview of the current election year and the Council’s planned financial position for the next three years. It also outlines Council’s broader financial goals, which are included in its 2015-25 Long Term Plan.

How it has been preparedAll councils must prepare a Pre-election Report. Section 99a of the Local Government Act 2002 sets out the information that must be included in the report and its timing.

It includes information previously published in other Council documents including the 2015-25 Long Term Plan, Annual Plans and Annual Reports.

As such the information reflects the policy and service delivery direction of the current Council.

As required by law, the report is prepared by the Chief Executive independently of the Mayor and Councillors.

Audit of informationWhile the Pre-election Report has not been audited, much of the information in it has already been audited by independent auditors.

The information looking back on the most recent financial year (2015/16) has not been audited as this process is still underway.

Where to find out moreOur website www.napier.govt.nz contains a wealth of detailed information about Council.

It also includes copies of the following documents:

• 2015-25 Long Term Plan

• 2016/17 Annual Plan

• 2014/15 Annual Report

You can find these documents at: www.napier.govt.nz/our-council/publications

Strategic directionOur MissionTo provide the facilities and services and the environment, leadership, encouragement and economic opportunity to make Napier the best city in New Zealand in which to live, work, raise a family, and enjoy a safe and satisfying life.

Our VisionOver the coming years we will continue to grow and maintain a vibrant Napier which surpasses expectations and embraces new opportunities for all aspects of the city.

1 Napier City Council

http://www.napier.govt.nz/assets/Document-Library/Plans/Annual-Plans-and-Ten-Year-Plans/napier-city-council-long-term-plan-2015-25.pdf

http://www.napier.govt.nz/assets/Document-Library/Plans/Annual-Plans-and-Ten-Year-Plans/annual-plan-1617.pdf

http://www.napier.govt.nz/assets/Document-Library/Reports/Annual-Reports/ar-1415.pdf

http://www.napier.govt.nz/our-council/publications/reports/

From the Chief ExecutiveWelcome to Napier City Council’s Pre-election Report

It should be read in conjunction with other Council documents including our Long Term Plan, our Annual Plan, and our Annual Report, which is due to be published in October.

As a Council, we consistently receive a good amount of positive feedback (as shown in the table on page 12) while continuing to strive to do better. Napier City Council is a strong supporter of the Local Government Excellence Programme and is one of the foundation councils to helping to establish criteria for assessing, improving and demonstrating council performance in a transparent way to our community.Over the last three years the Council has completed a number of key projects to enhance the city. One of the most significant projects in 2014 was the building of our new waste water treatment plant in Awatoto. The $32.7 million state-of-the-art facility was project-managed by Napier City Council, saving ratepayers millions of dollars.

We have also worked on, and continue to work on, extending the community’s facilities including pump track on Marine Parade, a new dog agility track at Park Island, Park Island’s sportsgrounds, upgrading our city’s stormwater network, the re-development of Hastings Street in our Central Business District and the four-laning of Prebensen Drive.

We’ve won a few significant awards too. In April 2014, the redevelopment of MTG Hawke’s Bay won the award for ‘Best Project’ at the New Zealand Museum Awards, and last year, won ‘Best Exhibition’. In May 2014, Council’s website won a top accolade at the Association of Local Government Information Management (ALGIM) Web and Digital Symposium awards ceremony.

Our support of Art Deco Weekend saw us take home the award for ‘Best Community Event’ at the Local Government New Zealand (LGNZ) Excellence Awards in Nelson in July 2014. We also received an outstanding commendation from the LGNZ Excellence Awards for the delivery of the waste water treatment plant.

This year we were nominated in the LGNZ Excellence Awards for our Sea Walls (‘Best Creative Place’), and received a Highly Commended for the Marine Parade Outfall and Viewing Platform (‘Best Practice in Infrastructure Management Project’).

Over the last three years we’ve hosted some wonderful events, including Art Deco Weekends, an All Blacks test match, and three ICC Cricket World Cup matches, the Air New Zealand Hawke’s Bay International Marathon, the NZ Elite Road National Cycling Championships, and the match between Australian NRL teams Melbourne Storm and St George Illawarra.

Council is also currently undertaking a restructuring across the organisation to better align staff so that we are more streamlined. This is so we have the capability and capacity to deliver valuable services to our customers and wider community.

Work is currently underway on a Parks, Reserves and Sportgrounds Strategy, and on a review of the HPUDS (Heretaunga Plains Urban Development Strategy). In the near future, we will review McLean Park to confirm a plan for its staged upgrade and discuss how it can become a true multi-use facility that provides social and economic benefits to our community.

Other projects that are underway and will be considered by Council in the near future are the options for the Napier Aquatic Centre and the development of a masterplan for the aquatic facility that aligns with the Aquatic Strategy. We are also in the process of developing a detailed business case for a Multi-Use Sports Facility which would extend the current facility at Pettigrew.Green Arena. This is to be considered by the new Council. Initial design and concept work is also being undertaken for an upgrade of the Civic Building which is no longer fit for purpose.

We will be starting work on a rethink of our CBD and consider what an appropriate urban design that aligns with our City Vision strategy.

Other exciting projects edging closer to completion are the Napier Conference Centre, former Marineland site redevelopment and Destination Playground.

Besides our own work, we’re also working through a range of significant issues with the other Hawke’s Bay Councils. These include a regionwide review of economic development strategies and delivery, rubbish and recycling collection and disposal (Waste Futures), and coastal erosion, inundation and tsunami threat (Coastal Hazards). Where we can, we continue to look at how we can share and collaborate through Hawke’s Bay Local Authority Shared Services (HB LASS Ltd) with some significant progress made over the past two years and more opportunities being explored.

Please take the time to read this report fully, as it should provide you with plenty of useful information about how your Council is performing.

Wayne JackCHIEF EXECUTIVE

2Pre-election Report 2016

Financial StrategyCouncil has a financial strategy in which there are limits and targets. The details of the financial strategies can be found in Council’s long-term plans, and these are updated every three years. The key limits and targets of the Council’s financial strategies are set out below:

2012-22 Long Term Plan 3 Rates increases – excluding growth – will be limited to inflation (CPI plus up to 3% each year)

3 Total rates will be approximately 53% of our total income

3 Net rate funded debt per capita will not exceed $1,000

3 Debt serving limited to 16% of rates

3 Net External Debt 100% of total income

3 Return on investments 4.5%

2015-25 Long Term Plan 3 The overall rates increases will be limited to inflation based on the Local Government Cost Index (LGCI) plus up to 3.0% each

year

3 Total rates will be approximately 53% of our total income

3 Net rate funded debt per capita will not exceed $1,500

3 Debt serving limited to 16% of rates

3 Net External Debt 100% of total income

3 Return on investments 4.5%

Percentage Rate Increase

49%

49%

50%

50%

51%

51%

52%

52%

53%

53%

54%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Actual2013/14

Actual2014/15

Estimate2015/16

AP Budget2016/17

LTP Budget2017/18

LTP Budget2018/19

LTP Budget2019/20

CPI/LCGI Plus 3% - Council's limit on rate increaseActual and forecast rates increasesTarget - Rates as percentage of revenue 53% (RH axis)Actual & forecast - Rates as percentage of revenue (RH axis)

Council has remained within it is limits on rate increases except as forecast for the 2017/18 year. The reason for this variance is that since the 2015-25 Long Term Plan has been prepared inflation forecasts are less than at the time the plan was prepared.


Debt Limits per Capita

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Actual2013/14

Actual2014/15

Estimate2015/16

AP Budget2016/17

LTP Budget2017/18

LTP Budget2018/19

LTP Budget2019/20

Council limits debt per capita Actual and forecast debt per capita

Council has remained and will continue to remain within its debt limits

Debt Limits

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0%

20%

40%

60%

80%

100%

120%

Actual2013/14

Actual2014/15

Estimate2015/16

AP Budget2016/17

LTP Budget2017/18

LTP Budget2018/19

LTP Budget2019/20

Limit - Debt to revenue 100%

Actual & forecast - Debt to revenue

Limit - Interest expense to rates 16% (RH Axis)

Actual & forecast - Interest expense to rates (RH Axis)


Return on Investments

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Actual2013/14

Actual2014/15

Estimate2015/16

AP Budget2016/17

LTP Budget2017/18

LTP Budget2018/19

LTP Budget2019/20

Targeted return on investments 4.5%

Actual return on investments %

Actual Interest income $,000 (RH axis)

Proposed Interest income $,000 (RH axis)

Because of falling interest rates Council has not achieved its percentage targeted rate of return on investments, however due to increased available cash investments the overall actual income has exceeded the forecasted amounts.

Cash Investments ($000)

-10,00020,00030,00040,00050,00060,00070,00080,00090,000

Actual2013/14

Actual2014/15

Estimate2015/16

AP Budget2016/17

LTP Budget2017/18

LTP Budget2018/19

LTP Budget2019/20


Funding Impact Statement - Whole of CouncilActual

2013/14 $000

Actual 2014/15

$000

Estimate 2015/16

$000

AP Budget 2016/17

$000

LTP Budget 2017/18

$000

LTP Budget 2018/19

$000

LTP Budget 2019/20

$000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 34,397 34,450 35,736 36,957 38,802 40,989 43,293 Targeted rates (other than targeted rates for water supply) 12,235 12,964 13,382 13,502 14,602 14,929 14,974 Subsidies and grants for operating purposes 4,084 4,157 4,262 2,618 2,669 2,736 2,827 Fees, charges and targeted rates from water supply 17,879 18,912 18,829 18,037 19,682 20,153 20,664 Interest and dividends from investments 3,285 3,555 2,891 966 530 649 901 Local authorities fuel tax, fines, infringement fees, and other receipts 13,554 14,876 18,143 16,918 18,971 19,395 19,851 Total operating funding (A) 85,434 88,914 93,243 88,998 95,256 98,851 102,510

Applications of operating fundingPayments to staff and suppliers 59,370 62,450 64,857 66,045 69,278 70,423 72,311 Finance costs 108 - - - - 248 248 Other operating funding applications 237 277 305 219 221 221 221 Total applications of operating funding (B) 59,715 62,727 65,162 66,264 69,499 70,892 72,780

Surplus/(deficit) of operating funding (A - B) 25,719 26,187 28,081 22,734 25,757 27,959 29,730

Sources of capital fundingSubsidies and grants for capital expenditure 697 289 1,528 17,979 2,533 2,622 2,714 Development and financial contributions 1,860 1,779 2,778 2,764 5,448 5,580 5,724 Increase/(decrease) in debt (2,008) (8) - - 4,000 - - Gross proceeds from sale of assets 1,276 913 688 120 126 115 119 Lump sum contributions - - - - - - - Total sources of capital funding (C) 1,825 2,973 4,994 20,863 12,107 8,317 8,557

Application of capital fundingCapital expenditure- to meet additional demand 685 1,132 7,876 8,702 11,503 2,809 4,466 - to improve the level of service 22,105 13,834 17,080 27,747 17,629 4,675 14,406 - to replace existing assets 10,412 11,533 15,872 22,910 20,752 19,009 17,644 Increase (decrease) in reserves (5,644) 182 (7,753) (15,762) (12,020) 9,783 1,771 Increase (decrease) of investments (14) 2,479 - - - - - Total application of capital funding (D) 27,544 29,160 33,075 43,597 37,864 36,276 38,287

Surplus/(deficit) of capital funding (C - D) (25,719) (26,187) (28,081) (22,734) (25,757) (27,959) (29,730)

Funding balance ((A-B) + (C-D)) - - - - - - -

The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act. The FIS is intended to make the sources and applications of Council funds more transparent manner than might be the case if only the usual GAAP financial statements were provided.

The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. It is therefore, by necessity, exempt from the GAAP requirements as it follows the prescribed format required under the Act.

The FIS links the Council's Revenue and Financing Policy, the annual setting of rates, fees, development contributions and annual borrowing requirements. The FIS sets out the revenue and financing mechanisms that will be used in each year along with an indicative level of rates, together with examples of the impact of rating proposals in year 1 of the LTP over a range of different categories of property and a range of different values.


Summary of Cash FlowsActual

2013/14 $000

Actual 2014/15

$000

Estimate 2015/16

$000

AP Budget 2016/17

$000

LTP Budget 2017/18

$000

LTP Budget 2018/19

$000

LTP Budget 2019/20

$000

Cash Flows from Operating Activities

Receipts from rates revenue 46,276 47,345 48,941 50,776 53,360 55,877 58,228

Interest received 3,428 3,144 3,418 964 528 647 899

Dividend received 2 5 5 2 - - -

Receipts from other revenue 37,411 38,837 45,849 51,824 51,002 49,970 51,186

Goods and services tax (net) 61 156 31 - - - -

Payments to suppliers and employees (57,062) (59,797) (61,889) (57,412) (69,124) (71,183) (69,553)

Interest paid (152) - - - - (248) (248)

Net Cash from Operating Activities 29,964 29,690 36,355 46,154 35,766 35,063 40,511

Cash Flows from Investing ActivitiesProceeds from sale of property, plant and equipment 1,276 913 675 116 126 115 119

Proceeds from withdrawal of investments 118,829 95,214 105,137 20,147 165 - -

Purchase of property, plant and equipment (32,799) (26,497) (39,731) (64,135) (49,888) (26,496) (36,512)

Purchase of intangible assets (119) (199) (310) (465) - - -

Acquisition of investments (115,884) (99,120) (102,000) - - (4,836) (4,836)

Net Cash from Investing Activities (28,697) (29,689) (36,229) (44,337) (49,598) (31,217) (41,229)

Cash Flows from Financing Activities

Proceeds from borrowings - - - - 4,000 - -

Repayment of borrowings (2,008) (8) (5) - - - -

Payment of finance lease liabilities - - - - - - -

Net cash from financing activities (2,008) (8) (5) - 4,000 - -

Net (decrease)/increase in cash, cash equivalents & bank overdrafts (741) (7) (121) 1,817 (9,832) 3,846 (718)Cash, cash equivalents & bank overdrafts at beginning of year 8,003 7,262 7,255 17,652 10,893 1,061 4,907

Cash, cash equivalents & bank overdrafts at year end 7,262 7,255 7,376 19,469 1,061 4,907 4,189


Summary Statement of Financial PositionActual

2013/14 $000

Actual 2014/15

$000

Estimate 2015/16

$000

AP Budget 2016/17

$000

LTP Budget 2017/18

$000

LTP Budget 2018/19

$000

LTP Budget 2019/20

$000

AssetsCurrent AssetsCash and Cash Equivalents 7,262 7,255 7,376 19,469 1,061 4,907 4,189 Debtors and Other Receivables 8,783 9,804 8,635 11,263 14,631 15,003 15,400 Inventories 2,407 2,516 379 3,032 4,640 4,640 4,640 Biological assets 323 315 191 300 300 300 300 Other Financial Assets 70,500 75,000 72,000 45,000 5,000 10,000 15,000

Total Current Assets 89,275 94,890 88,581 79,064 25,632 34,850 39,529

Non-Current AssetsProperty, Plant & Equipment 1,324,124 1,325,517 1,350,256 1,454,923 1,496,587 1,505,183 1,589,890 Intangible assets 332 365 453 465 563 260 60 Inventories 3,207 1,796 2,224 7,403 5,795 4,186 2,578 Investment Property 31,568 32,319 32,814 32,969 32,850 33,178 33,510 Investments in Associates 4,326 6,804 7,293 7,297 5,134 5,374 5,613 Other Financial Assets 848 397 475 348 348 348 348

Total Non-Current Assets 1,364,405 1,367,198 1,393,515 1,503,405 1,541,277 1,548,529 1,631,999

Total Assets 1,453,680 1,462,088 1,482,096 1,582,469 1,566,909 1,583,379 1,671,528

Less LiabilitiesCurrent LiabilitiesCreditors and other payables 10,086 11,174 12,595 14,087 12,204 9,882 11,162 Employee benefit liabilities 3,306 3,455 3,597 3,988 3,925 4,098 4,314 Borrowings 8 4 - - - - -

Total Current Liabilities 13,400 14,633 16,192 18,075 16,129 13,980 15,476

Non-Current LiabilitiesProvisions 1,235 3,924 4,523 1,074 1,343 1,406 1,469 Revenue received in advance 1,464 1,462 1,200 17 1,610 1,423 1,184 Employee benefit liabilities 1,040 806 537 1,347 1,347 1,292 1,113 Borrowings 4 - - - 4,000 4,000 4,000

Total Non-Current Liabilities 3,743 6,192 6,260 2,439 8,300 8,121 7,766

Total Liabilities 17,143 20,825 22,452 20,514 24,429 22,101 23,242

Total Net Assets 1,436,537 1,441,263 1,459,644 1,561,955 1,542,480 1,561,278 1,648,286

EquityAccumulated funds 733,698 750,304 763,896 811,200 793,586 807,247 823,506 Other Reserves 702,839 690,959 695,748 750,755 748,894 754,031 824,780

Total Net Assets / Equity 1,436,537 1,441,263 1,459,644 1,561,955 1,542,480 1,561,278 1,648,286


Financial Condition IndicatorsActual

2013/14 $000

Actual 2014/15

$000

Estimate 2015/16

$000

AP Budget 2016/17

$000

LTP Budget 2017/18

$000

LTP Budget 2018/19

$000

LTP Budget 2019/20

$000

Rates Revenue 46,632 47,414 49,119 50,460 53,403 55,918 58,266 Net Surplus 7,843 6,688 12,638 9,880 12,245 13,707 16,202 Working Capital 75,875 77,367 72,197 60,988 9,504 20,870 24,054 Net Public Debt (External) 12 4 - - 4,000 4,000 4,000 Internal Debt 36,783 33,442 41,715 51,097 49,113 48,809 52,856

Total Assets 1,453,680 1,462,088 1,481,800 1,582,469 1,566,910 1,583,379 1,671,529

% Rates Revenue to Total Revenue 52.54% 51.17% 49.9% 51.8% 50.3% 50.8% 51.1%Net Public Debt as a percentage of Total Assets 0.00% 0.00% 0.0% 0.0% 0.3% 0.3% 0.2%Proportion of Rates Revenue applied to service Total Debt (%) 7.68% 6.80% 7.0% 7.0% 8.4% 9.0% 9.0%

Rates increase to existing ratepayers year on year * 1.00% 1.80% 2.9% 3.6% 5.0% 4.5% 4.0%

* Excludes expected rating revenue increase arising from growth in the rating base

Key Statistics30 June 2016 30 June 2015

Area and PopulationArea (ha) 10,560 10,560Population (forecast based from Statistics NZ) 60,400 58,000

ValuationRateable properties (number of) 25,224 25,099Non-rateable properties (number of) 378 372Gross capital value 10,585,736,600 10,483,460,350Net capital value (i.e. capital value of rateable property) 10,103,370,800 10,003,847,150Gross land value 4,816,812,550 4,798,775,300Net land value (i.e. land value of rateable property) 4,631,041,250 4,612,531,600Date of last revision of values 2014 2014

Rates and RatingTotal rates struck (incl. GST) 55,899,784 54,299,108System of rating Land Value Land Value

Public DebtPublic Debt (external) 0 4,550Internal Debt 41,715,000 33,442,000Loan redemption reserves 0 0Unexercised loan authorities 78,736,000 82,400,000

Building ConsentsValue of consents for year 144,650,552 85,476,427Value of consents for residential properties 62,066,405 40,934,525


BorrowingThe Council manages its finances prudently and with consideration for both the current and the future generations of the community. Projected borrowing levels are shown in the Long Term Plan which Council prepares and consults on every three years. Details of actual and projected borrowing levels and performance against key parameters for past and future years are outlined in the tables below.

Borrowing is undertaken, when required, to fund assets with long lives. Borrowing is not the only source of funding for assets. Development of new assets and renewal of existing assets may also be funded by a number of sources other than borrowing. These can include government grants and subsidies, contributions from developers for infrastructure costs required as a consequence of development through development and/or financial contributions, targeted rates and fees and charges.

Capital expenditure through to 2024/25, the funding sources and borrowing levels for the same time frame were reviewed and updated as part of preparing the 2015 - 2025 Long Term Plan. As forecasted in the Long Term Plan all external borrowing has been extinguished during the 2015/16 year.

The practice of retiring external debt and redeploying cash from equity and special funds has worked well in providing fiscal efficiency and strengthening our overall financial position. Internal borrowing is part of Council’s financial strategy and is an important factor in ensuring that Council has financial capacity in place to respond to unforeseen circumstances and to support/enable future City growth.

The table below shows the gross debt of Council over past and future budget years.

Debt Levels Internal and ExternalActual

2013/14$000

Actual2014/15

$000

Estimate2015/16

$000

AP Budget2016/17

$000

LTP Budget2017/18

$000

LTP Budget2018/19

$000

LTP Budget2019/20

$000

External debt 12 4 - - 4,000 4,000 4,000

Internal debt 36,783 33,442 41,715 51,097 49,113 48,809 52,856

36,795 33,446 41,715 51,097 53,113 52,809 56,856

Council’s Liability Management Policy is set by Council and details the key parameters used to ensure ratepayers are not exposed to excessive levels of debt and debt servicing. Under this policy Council is able to borrow to fund projects which will benefit several generations of residents or when a project is a ‘one-off’ or to fund Council’s balance sheet. However, the risk to both current and future generations of uncontrolled borrowing is significant, so Council, within its policy, manages these risks within specific borrowing limits. Performance against these limits is measured annually as a part of year end reporting. The measures for past and future years are shown in the tables below.

Debt ServicingProportion of Rates Revenue applied to Service Debt (External & Internal Debt)

Actual2013/14

$000

Actual2014/15

$000

Estimate2015/16

$000

AP Budget2016/17

$000

LTP Budget2017/18

$000

LTP Budget2018/19

$000

LTP Budget2019/20

$000

Debt Servicing Proportion - actual 7.70% 6.80% 7.00% 7.00% 8.40% 9.00% 9.00%Policy limit: 16% 16% 16% 16% 16% 16% 16%

Rate Funded Debt per CapitaNet Rate-funded Debt per Capita (External & Internal Debt)

Actual2013/14

$000

Actual2014/15

$000

Estimate2015/16

$000

AP Budget2016/17

$000

LTP Budget2017/18

$000

LTP Budget2018/19

$000

LTP Budget2019/20

$000

Rate Funded Debt per Capita - actual $501 $427 $539 $590 $659 $660 $622Policy limit: $1,000 $1,000 $1,500 $1,500 $1,500 $1,500 $1,500


Debt/IncomeNet External Debt as a % of total income (External & Internal Debt prior to 2015/16)

Actual2013/14

$000

Actual2014/15

$000

Estimate2015/16

$000

AP Budget2016/17

$000

LTP Budget2017/18

$000

LTP Budget2018/19

$000

LTP Budget2019/20

$000

Net Debt % of Total Income - actual 41% 36% 0% 0% 4% 4% 4%Policy limit: 100% 100% 100% 100% 100% 100% 100%

LiquidityLiquidity to external debt

Actual2013/14

$000

Actual2014/15

$000

Estimate2015/16

$000

AP Budget2016/17

$000

LTP Budget2017/18

$000

LTP Budget2018/19

$000

LTP Budget2019/20

$000

Liquidity % - actual 631% 886% - - 252% 473% 580%Policy minimum 110% 110% 110% 110% 110% 110% 110%


Annual NRB Public Satisfaction SurveyThe results of the Annual NRB Survey are one measure of public satisfaction levels of services provided by Council.

The Council commissions this public satisfaction survey where 450 residents throughout the city are interviewed by phone. The results provide useful information on how Council services and facilities are perceived by the community.

Service

2013 Satisfaction

%

2014 Satisfaction

%

2015 Satisfaction

%

2016 Satisfaction

%

Public Gardens and Street Beds 95 96 96 96

Water Supply 96 95 95 92

Sportsfields 87 87 89 89

Parks and Reserves 95 96 91 95

Sewerage system 92 92 93 89

Roads 89 93 88 91

Stormwater services 90 92 89 88

Footpaths 86 86 82 84

Parking in Taradale and other suburbs 64 60 70 67

Dog control 84 82 80 76

Noise Control 86 86 85 81

Public Toilets 76 78 72 74

Library service 84 85 84 81

Cemeteries, including maintenance 77 77 77 73

Parking in the City Centre 66 66 68 65

Refuse Collection 94 92 91 94

Control of Litter, Graffiti and Vandalism 92 91 91 91

Swimming pools 56 56 61 50

Civil Defence Organisation 75 72 71 70

Council’s Policies to Promote Job Opportunities 31 35 32 38

Tourism Promotion 87 84 87 90

Town Planning 55 59 57 56

MTG Hawke’s Bay 0 27 43 50


Major projects planned for the three financial years following the 2016 electionThe following includes planned major projects with expenditure occurring in the next three financial years immediately following the 2016 election (2017/18, 2018/19, 2019/20). For full details refer to the Prospective Capital Plan in the 2016/17 Annual Plan, available from the Council or from the website.

Land Development for GrowthThe 1999 Napier Urban Growth Strategy identified the need for further housing development in the city. That was confirmed in a review of the strategy in 2008 and also by the adopted Heretaunga Plains Urban Development Strategy 2010 (HPUDS).

The area identified for development covers about 125ha some 3.5km south of the CBD. Te Awa Structure Plan is a wedge of land is bordered by Napier Boys’ High School (to the north), Willowbank Avenue (to the west), Te Awa Avenue (to the east) and the Cross Country Drain (to the south).

Included in the Capital Plan over the next three years is $9.129m of funding for major infrastructure to facilitate development in this area.

The Council is also developing residential sections of the Parklands Residential Estate. This development, together with private residential development will allow for growth across the city.

SportsgroundsPark Island SportsgroundsThe Capital Plan includes $4.738 million for extensions to the Park Island Sports Complex over the next three years. Council has also allocated $500,000 as its contribution towards a third artificial hockey turf at Park Island. Planning is underway to build the third turf in 2017.

Multi-Use Sports FacilityThere is strong demand for additional court space and for this type of facility in Hawke’s Bay. Basketball, volleyball, futsal and netball are key growth sports in the region, needing additional indoor court facilities. A total of $3.511 million has been set aside over the next three years with expected external funding the total project is estimated to cost $15.6 million for the construction of a multi-use sports facility. There is also strong support for a velodrome amongst the various cycling entities and schools in the region. So far the process of developing the detailed business case has identified a number of development opportunities including enhanced revenue generation. These opportunities need to be fully investigated and integrated into the detailed business case before it is reviewed by Sport New Zealand and the project steering group.

McLean Park UpgradeProvision has been made in the sportsground development budget to upgrade the infield lighting and players facilities, and develop new drop in cricket wickets and player practice nets over the next three financial years.

Sportsgrounds renewalsFunding of $1.275 million has been allocated in the capital programme over the next three years for the planned renewal works identified throughout the city by assessing their current condition.

ReservesCity Wide Reserves and LinkagesNapier City Council will be developing a city wide Parks and Reserves Strategy in 2017. This strategy will identify the suitability of existing parks and reserves, any shortfalls in provision based on community need, and how these shortfalls will be addressed. Any capital work required to address shortfalls will follow the development of the strategy. At present the capital plan includes $6.956 million over the next three years to fund this work.

Whakarire Avenue Breakwater and Westshore Beach re-profilingThe Whakarire Avenue Breakwater project has been included in the Capital Plan with $1.174 million in 2016/17 and 2017/18. Westshore Beach re-profiling is planned to follow the construction of the Whakarire Breakwater at a total cost of $2.745 million.

Ahuriri Water Sports FacilityFunding of $4.802 million has been provided for the Ahuriri Water Sports Facility (total project funding is $5.112 million). Council recognises that the Ahuriri Estuary is a magnificent ecological asset and the development of the Ahuriri Management Plan with iwi and other key stakeholders is underway. Council is committed to a business case for the Water Sports Facility project and will not proceed with the next stages if it is shown that significant environmental effects cannot be avoided.

Reserves renewalsFunding of $1.942 million has been allocated in the capital programme over the next three years, for planned renewal works identified through assessments of their current condition throughout the City.

Roading ProjectsCapital WorksThe Capital Plan allows for expenditure in 2017/18 of bulk funded capital works of $1.564 million, funded from rates deferred from earlier years. Works total $39 million in value and relate to road widening and network upgrade projects that are required to ensure the transport network meets current design standards.

Cycle StrategyPlanning to make Napier a better city for cycling involves a partnership between Council, central government (until 2019)and the community. Council is committed to providing for the safe and convenient movement of cyclists throughout the whole of the city, including Bay View and its links to the Hastings District Council (HDC) network. This is a Strategy that caters for recreational and commuter and competitive cyclists. The project, now known as iWay, sees Council working closely with HDC, which has been receiving targeted cycling funding from central government since 2010. The project commenced in 2015/16 and will continue until 2020/21 with $6.81m set aside in the capital projects for this project funded from rates, NZTA and external funding.


Stormwater ProjectsUpgrading Stormwater SystemsThe urban stormwater system is being continually upgraded. The current design standard requires the system to be designed to cater for the type of storm the city might expect to experience once in every 10 years so that only limited surface ponding occurs. Increasing infill and greenfield developments have added more buildings, driveways, roads and sealed surfaces within the city boundaries, resulting in greater volumes of water running off the hard, impermeable surfaces and putting pressure on the existing stormwater and pumping systems. Up until 1996, the system design was based upon catering for a two year return period rainfall event, meaning the city had a 50 per cent chance of stormwater ponding in the streets each year. The current design standard caters for a 10 year return period rainfall event, which equates to a 10 per cent chance of similar ponding in any one year. A total of $3.044 million has been allocated for upgrade work over the next three years.

Taradale Stormwater UpgradeFunding of $2.873 million has been provided over the next three years to reduce the risk of flooding in the Greenmeadows area around the Guppy Road, Osier Road, Gloucester Street and McKeefrey Avenue areas.

WastewaterRenewal ProgrammeFunding of $5.539 million has been allocated in the capital programme over the next three years, for planned renewal works identified through assessments of their current condition throughout the City.

Water SupplyRenewal ProgrammeFunding of $3.461 million has been allocated in the capital programme over the next three years, for the planned renewal water supply infrastructure throughout the City.

ParkingCBD Parking ProjectAdditional parking in the CBD is allowed for in the Capital Plan funded from the various parking special funds. The plan includes provision of $6.589 million for this purpose; however any future development will be subject to feasibility reviews.

Infrastructural RenewalsProvision of infrastructure is a critical deliverable of all Councils and this requirement is laid out in the purposes of the amended Local Government in the Local Government Act 2012.

Council is acutely aware that the provision of essential infrastructure which meets the needs of its citizens is core to the economic, social and cultural needs of the city. The figures below demonstrate the value Napier has invested in its essential assets.

In addition to the discrete capital projects specifically identified, approximately 64 - 75% of the rate funded capital plan is committed annually to the renewal of existing infrastructure. This ensures continuity of services at current levels.

The citizens of Napier City have invested $1.326 billion infrastructure over successive generations. Significant components of this are:

Infastructure Replacement Value

Roading Network $610m

Sewer Management $150m

Water Supply Systems $81m

Stormwater $109m

Sportsgrounds/Reserves $189m

These assets comprise 93% of the property, plant and equipment servicing the city.

How are these assets managed?Napier City has developed Asset Management Plans that identify and define:

• current levels of service provided

• projected future demand for these services

• the timing and cost of renewal needs

• planned improvements to address known capacity issues and future growth

• an improvement plan that identifies how Council intend to improve and refine the plan over time

These Asset Management Plans are the culmination of extensive work undertaken to understand the whole life cycle of Council’s infrastructure assets. Asset Management Plans are supported by a detailed inventory of the city’s infrastructure assets. This includes the age of the assets and is also supported by condition assessments undertaken periodically.

Asset Management Plans seek to ensure that projects and related expenditure are undertaken in a sustainable manner.

A good example of this approach is the Cross Country Drain project. This put in place infrastructure that was more than 14 years in planning and implementation and provides stormwater infrastructure which incorporates:

• increased capacity to mitigate the effects of increased rainfall (climate change)

• improved robustness of stormwater system by linking catchments

• discharge to Hawke Bay, a less sensitive environment than Ahuriri estuary


Other MattersEarthquake Prone BuildingsIn recent years national awareness and involvement in the processes around determining of earthquake prone buildings under the Building Act, and the resulting strengthening, has grown considerably. The Government has become directly involved and is currently working towards national direction under the determinations made by the Canterbury Earthquake Commission.

While we are currently experiencing some uncertainty around Government policy, owners and developers of buildings in Napier have proactively continued to have their buildings assessed in accordance with the Council’s policy. Numerous buildings have now been strengthened in accordance with the Building Act.

Napier still faces a serious conflict with its Art Deco building heritage. The uniqueness of the City is tied to the 1931 earthquake and the Art Deco redevelopment that occurred in the decade following.

The City actively promotes protection of this heritage and in general building owners and developers have a well established record of endorsing and honouring protection and redevelopment of this historic building stock rather than demolition and building new. Because of the age and the building technology of the 1930s, these buildings are becoming difficult if not impossible to insure fully. This in itself will become an issue for future Councils in Napier. There may be future budgetary impacts arising from this conflict for the Council.

Council is continuing with seismic assessments on Council owned buildings. Some budget provision has been made for strengthening of Council owned buildings but there will inevitably be additional funding required as assessments are completed and business cases prepared for strengthening works.

Liquefaction Risk AssessmentCouncil is currently committed to a joint review (funded by Napier City Council, Hawke’s Bay Regional Council and Hastings District Council) of liquefaction risk assessment throughout the Heretaunga Plains.

This review has come from the recommendations of the Canterbury Earthquake Commission which found that general information about land stability was not enough to give communities certainty into the future.

Specific liquefaction assessments are now required by the Council as developments in the City obtain consents but the Councils jointly agreed that a technical review of the previous report was now essential. The Regional Council is the leading authority in this process.

While previous general modelling has provided the background information on liquefaction risk it is clearly possible that the new Council in this next term may be required to review policy related to development around the findings of this review. The review is a budgeted cost, fully funded, but it is possible that additional costs will arise from recommendations yet to be made.

Aquatic StrategyIn August 2015 Council adopted its Aquatic Strategy. The purpose of this Strategy is to set the direction for the provision of aquatic space that will meet the City’s needs for the next 30 years.

In addition to meeting the needs of aquatic facility users, the strategy is strongly influenced by the Local Government Act which requires that councils provide good quality local infrastructure and public services to achieve community well-being.

The strategy guides Council’s involvement in providing, developing and managing public swimming pools, and public outdoor aquatic recreation area management to maximise accessibility, participation and opportunities for recreation, aquatic sports, learn to swim and other programmes to the community.

The strategy was developed in consultation with key stakeholders including facility managers, Hastings District Council, Sport Hawke’s Bay, Hawke’s Bay District Health Board, ACC, Water Safety New Zealand surf lifesaving clubs, swim clubs and water sports clubs.

Napier Aquatic Centre, Ocean Spa and the Greendale pool complexes are currently the main providers of public pools in Napier. Significant reinvestment is required for these facilities that focus on the changing needs and demands for pool space. This must take into consideration our ageing population, changing trends in aquatic sports and increased demand resulting from the closure of school pools including Greendale in December 2016.

The strategy identifies key principles and goals that aim to; provide for healthy communities, increase participation in aquatic activities, provide safe opportunities for aquatic interaction, promote financially sustainable and efficient facilities that are well maintained and fit for purpose, and promote partnerships where possible which are mutually beneficial.

The strategy sets out an implementation plan that identifies actions to be carried out to contribute towards achieving these key goals. The plan identifies what Council’s role is, potential partners, financial implications and timeframes for when the action is to be completed.

A feasibility study into aquatics provision for the Taradale are has been completed and recommend Council invest in expanding and replacing pool space at the Napier Aquatic Centre.

This financial year a detailed business case on the Napier Aquatic Centre will be commenced. The business case will cover issues such as configuration, construction costs, and funding sources and take into account Napier’s other pool providers. A total of $1.5 million of the 2014/15 year end surplus has been set aside for this project.


napier city council pre-election report · 2018-11-27 · from the chief executive welcome to...

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